German cement major Heidelberg Cement has decided to move the Securities Appellate Tribunal (SAT) against an order passed by the Securities and Exchange Board of India (Sebi) asking it to raise its open offer price by 25% to Mysore Cements shareholders.

It may be recalled that Sebi had recently asked Heidelberg to raise the price of its open offer for Mysore Cements to Rs 72.50 per shares from Rs 58 per share. The market watchdog in its observation letter to the firm had said, “payment of non-compete fee to the selling promoters does not appear to be justified and thus you are advised to revise the offer price after including the payment of non-compete fee (per share) in the negotiated price.”

In July 2006, Mysore Cements had announced that it would allot up to 66.5 million equity shares, representing 42.08% stake to Heidelberg on a preferential basis at Rs 54 apiece. Also, Heidelberg entered into a deal to acquire 13.4 million shares of the company amounting to 8.4% stake from Mysore Cement’ promoters at Rs 58 per share, excluding a non-compete fee of Rs 14.50 per share.